Bristol, Pennsylvania —
President Donald Trump is announcing a new network of gas stations that sell gasoline for $3.479 a gallon, well below both market prices and wholesale costs.
“This retailer is taking the lead and others should follow,” he wrote in a Truth Social post last week, highlighting the chain’s 25-store opening on July 3. Freedom Fuel gas stations are located primarily around Philadelphia and southern New Jersey. “Gas prices at the pump are falling… but not as fast as we’d like.”
High gas prices have been a sore point for the Trump administration since the start of the war with Iran. AAA’s national average was $3.85 a gallon as of Thursday and $3.99 in Pennsylvania, below the peak but well above pre-war prices.
But the deal Trump is pushing is available at only two dozen gas stations out of tens of thousands of gas stations across the country. CNN could not confirm that all Freedom gas stations are open.
And it’s unclear who runs the discount gas stations and for how long.
Freedom Fuel did not respond to requests for comment. The White House said Freedom Fuel Network is a private company with no government support or subsidies.
“The Administration is not involved in the company, and the Administration has not provided any funding to the company. There is no other organization or entity subsidizing lower gas prices,” a White House spokesperson told CNN. “They are simply cutting their profits to make prices at the pump more affordable for drivers in Philadelphia and New Jersey.”
On June 23, CNN discovered an application to incorporate Freedom Fuel Network in Delaware., but no owner was listed.
Gas station owners set their own fuel prices, and the vast majority of gas stations in the country are small businesses with low profit margins, rather than the large oil companies that often have their own brands at the stations. Many make most of their money from items sold inside convenience stores, such as snacks and drinks.
Stations can’t be profitable or even environmentally sustainable by charging well below cost, said Jeff Lenard, a spokesman for the National Association of Convenience Stores, which represents stores that sell about 80% of the fuel sold nationwide.
“These stations will not be able to operate the way traditional retailers do, at least not without breaking even on fuel,” Lenard said.
Most drivers who pulled into one of the stations in Bristol, Pennsylvania, on Wednesday evening told CNN they were unaware of the White House’s support for the company. They were just happy to find cheaper gas.
James Lymer said he heard about cheaper gas through social media and made the trip specifically to fill up. He was buying nearly 16 gallons of gas for $55 for his Toyota 4Runner SUV, saving about $8 over the price he would normally pay.
“I love it because I’m retired and every little bit helps,” he said.
A rival independent gas station nearby, Red Lion Fuel, was selling gasoline for $3.60 a gallon Wednesday. Muhammad Irfan, who has owned the station since 2022, told CNN that before the Freedom Fuel store opened, he was already selling about 500 gallons a day less than usual.
He typically prices his gas cheaper than nearby stations, including the former Valero station that is now Freedom Fuel. But it can’t hope to match Freedom Fuel’s prices.
“We can’t even compete,” he said. “We’re barely breaking even when we pay off things like credit card expenses. I can’t get down to $3.47 unless I lose money.”
Some large retailers, such as Costco, may sell gas at below market prices, but this is due to the huge volumes of fuel that the huge retailer purchases nationally. The closest Costco to Freedom Fuel in Bristol was also selling gas for $3.479 a gallon.
“When you buy fuel in that volume, you have a different price (for wholesale gas) than someone who gets one or two tank truck deliveries a week,” Lenard said.
Irfan said he doesn’t know who, if anyone, is providing Freedom Fuel with financial support or rebates to allow it to keep prices so low. If they receive financial support from the government or supporters of the Trump administration, “it’s very unfair.”
“We keep our prices very fair so everyone can afford it,” he said. “Our reputation always gets us business.”
Another driver filling up at Freedom Fuel in Bristol, Bud Shank, said he is not a fan of the Trump administration., and lower fuel prices don’t change his views on the president.
“I wouldn’t be a (Trump) supporter anyway,” he said as he filled his tank with $51. “I’m here because of the low cost of fuel. I drive several vehicles. One of them is a motorhome that gets 8 mpg.”